What is invoice factoring?
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Factoring is
the purchase of your current, valid accounts receivables for
cash. You send us the invoice and we front a percentage
(70-90%) of the cash at the time the invoice is received.
We collect the remainder of the invoice and remit it to you, as
received, less our small fee.
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What are
the invoice factoring fees?
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Fees are determined by the total amount of
invoices, the average size of the invoice and the industry the
invoice comes from. Typical fees range from 2-4% of the
invoice. visit our
pricing page for
a more detailed breakdown.
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How long
does invoice factoring take?
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Set-up takes a few days. Once you are set up, you generate an invoice, send a copy to us, and funding
can often take place within 24 hours.
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Do you need
good credit for factoring?
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The short answer is no. With invoice factoring, your
client's credit is more important than yours or your firm's. |
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Can a start up do invoice
factoring?
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Absolutely not. The age of your business has no
bearing on the soundness of your invoices. No matter how long
your company has been in business, you can take advantage of
factoring.
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Does my customer know I am factoring?
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Yes they do, however, unlike the old days,
factoring is a way of life in the business world today and is a
widely accepted practice. Our team acts as your collection team
and your customers are handled courteously and professionally.
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How is
invoice factoring viewed today?
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It turns out that many of our customer's own
clients are also factoring their invoices so they really think
nothing of it. Factoring is a widely accepted form of doing
business today and it really isn't a problem.
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Is invoice factoring a bank
loan?
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Factoring is not a loan. It's a financial
transaction, whereby the factoring company purchases invoices for a small discount. |
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